Panasonic suspends its business with Huawei after US ban
In a statement, Panasonic said it had sent an internal instruction to suspend transactions with Huawei and its 68 affiliates that were banned by the US government.
Japanese electronics firm Panasonic said on Thursday it has halted the shipment of some components to China’s Huawei and has stopped all business transactions with the firm following the imposed ban from the United States (US) on the Chinese telecoms equipment maker.
In a statement, Panasonic said it had sent an internal instruction to suspend transactions with Huawei and its 68 affiliates that were banned by the US government.
The firm said the ban applies to goods that contain 25% or more US-based technology, software or materials. Panasonic supplies electronic parts to Huawei, according to a report from AFP.
Panasonic said there will be limited impact on its earnings due to the Huawei ban.
Shares of Panasonic were lower by 0.63% or 6 Japanese Yen, at 899 Japanese Yen at around 10.20am Tokyo time on Thursday.
Huawei deals with a slew of setbacks
The US blocked Huawei from buying American goods last week and global markets were thrown in a loop on Monday when Google said it would sever ties with Huawei to comply with the US ban.
Late on Monday, the US commerce department said it would postpone the implementation of its ban for 90 days to prevent a sudden disruption to businesses and to allow for companies to adjust to the changes.
Earlier in the week, British chip designer ARM said it had halted its business with Huawei to comply with the US ban. The firm would stop licensing essential technology to Huawei.
News outlets reported that the US administration was looking at imposing similar sanctions faced by Huawei on Chinese video surveillance firm Hikvision.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
